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Google and Microsoft Announce Significant Layoffs Amid Strategic Shifts to AI

In a notable move amidst a series of strategic pivots to artificial intelligence, tech giants Google and Microsoft have announced significant layoffs, impacting various divisions within their organizations.

Google has confirmed that its Cloud division has handed out pink slips to approximately 100 employees, with the layoffs affecting both sales and engineering teams. This decision is part of a broader effort to reduce operating budgets and refocus investments on critical business areas. The layoffs contribute to a growing total for 2024, marking yet another round of job cuts within the company. Sundar Pichai, CEO of Google, had previously indicated these changes in an internal memo, hinting at more stability in the latter half of the year—a promise yet to materialize.

The reductions are not confined to Google’s home turf. Some of the displaced engineering roles are being relocated to branches in India, Mexico, and other locations as part of the company’s global restructuring efforts. This move has sparked concern within the market, reflecting broader apprehensions about the stability and future direction of the tech sector.

Microsoft, on the other hand, has executed a deeper cut, with around 1,000 employees being asked to exit the company. These layoffs predominantly affect the Mixed Reality team, particularly those involved in the development of HoloLens 2. This decision is seen as part of Microsoft’s extensive restructuring plans, focusing on a strategic realignment to bolster its AI and cloud capabilities.

The layoffs at both companies, reported by CNBC, underscore a significant trend in the tech industry, where major firms are recalibrating their workforces in response to evolving technological priorities. While both Google and Microsoft are positioning themselves for future growth in AI and related fields, the immediate impact of these layoffs has generated a wave of concern among investors and market analysts.

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